Ask Question
BusinessBusiness
11 December, 05:41

A computer company leases rather than sells its computers to consumers for a monthly fee. The company maintains the computers and replaces them as needed. The old computers are either refurbished or recycled. What does this business model represent.

+1
Answers (1)
  1. 11 December, 07:33
    0
    The answer is Leasing Business Model.

    Explanation:

    In the leasing business model, what happens is that rather than being a "Seller" and handing over the ownership of the goods for a price, the "Lessor" (a person/organization that lease goods/assets) hands over the assets for an other party (Lessee) for an agreed monthly amount.

    What is beneficial about this model is that the Lessor retains the ownership rights and gets a constant cash flow each month until the useful life of the leased asset remains.

    Once the asset is no longer usable, as in this scenario, they can refurbish it or get rid of it completely by selling it!
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A computer company leases rather than sells its computers to consumers for a monthly fee. The company maintains the computers and replaces ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The VP of Sales wants to enforce a new B2B sales process for the sales representatives. For example, if an opportunity is still in the Prospecting stage one day after the next stage is due, the Deal Status should change to Stalled and the number of
Answers (1)
How does a production possibility chart assist in outlining opportunity cost?
Answers (1)
Medical Payments coverage provides protection for all of the following except which one? A. The insured B. The insured's family C. Passengers in the insured's vehicle D. Occupants of a vehicle that is struck by the insured's vehicle
Answers (1)
How does a production possibilities curve illustrate the decisions made in an economy
Answers (1)
E13-5. (adjusting entry for sales tax) (lo 1) during the month of june, rowling boutique had cash sales of $233,200 and credit sales of $153,700, both of which include the 6% sales tax that must be remitted to the state by july 15.
Answers (1)
New Questions in Business
In January the price of dark chocolate candy bars was $2.00, and Willy's Chocolate Factory produced 80 pounds. In February the price of dark chocolate candy bars was $2.50, and Willy's produced 110 pounds.
Answers (1)
Why is there a difference between interest charged and interest earned? Question 7 options: Banks are non-profit institutions. Banks are profit-making institutions. Banks must pay more than they receive.
Answers (2)
In most business organizations, the chief management accountant is called the controller. a. True b. False
Answers (1)
A nation has a workforce of 500 workers. In every month, 10 workers leave jobs, and 10 different workers tind jobs However, there are also 20 workers who lack the skills to be employed, and thus remain unemployed throughout the year There is no
Answers (2)
In the late 1800s, workers tolerated poor wages and working conditions because they a. thought that the government would protect them. b. believed it had to get worse before it got better. c. could be replaced easily by other workers. d.
Answers (1)
Home » Business » A computer company leases rather than sells its computers to consumers for a monthly fee. The company maintains the computers and replaces them as needed. The old computers are either refurbished or recycled. What does this business model represent.
Sign Up Forgot Password?